FHA Construction Loan for a Fourplex?

Question

Good Day,

Been calling around to different banks trying to Find a FHA One Time close/Construction loan for a Fourplex. The Banks that will do them only do SFR one's. Is this even possible? also does anyone know of a bank in VA that does them.

Ryan Foote · Answer

Try contacting these guys.  I'm in the same boat and no one else has been able to do this loan in New York.  I have found banks in other states.

http://www.balanceprocess.com/fha-construction-loan/

Account Closed · Answer

Josh,

Did you find a lender willing to do a new construction fourplex FHA loan @ 3.5% down. I would be most interested.

Eric Heinen · Answer

I know FIG does ground up construction of fourplexes for investors, but I've never heard of anyone trying to owner occupy one of their builds with a minimal down payment. Might be worth looking into though.

https://www.fig.us/news

Upen Patel · Answer

@Tyler Polanco Construction loans are portfolio loans, so each lender makes their own risk decision. So there could be someone out there, but I would doubt it. Not as an owner occupied with just 3.5-5% down.

The more likely option is finding a fix and flip/hard money/private lender willing to do a ground up construction loan. Be ready to put min 10-15%.

Tyler Polanco · Answer

@Upen Patel Mr. Patel, I noticed you said that they will not find a lender willing to loan with 3.5-5% on a new construction 4 plex. Are there really no lenders that offer this or is it just really hard to find? Also, say there is a lender that will take 3.5-5% down - Is it possible to qualify future rental income towards the loan amount?

Michele B. · Answer

Please tag me with more information.  I need to know the numbers..... How much, LTV, years, Interest rate prefered, Longevity?

Upen Patel · Answer

@Joshua Kidwell You are not going to find a lender willing to do 3.5%-5% down on a multi-unit (2-4) new construction, even if you are going to owner occupy it.

Joshua Kidwell · Answer

Yeah I’ve seen that already. Just trying to find out now if you can do this type of loan on something other then single family and also a bank that will do it.

Called about 30 banks so far and have had no luck

Joshua Kidwell · Answer

Yes.

With the one time close I think there would be less fees.

Never done a 2 close before would my GC have to qualify? Would I need 20% down for the 1st phase of the loan? Was wanting to only have the min down payment in it for the fha loan.

FHA Construction Loan for a Fourplex?

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